The Hindu : Jayalalithaa justifies withdrawal of benefits

Online edition of India's National Newspaper
Friday, Mar 28, 2003

Southern States

Southern States - Tamil Nadu

Jayalalithaa justifies withdrawal of benefits

By Our Special Correspondent

CHENNAI MARCH 27. The Chief Minister, Jayalalithaa, today justified the withdrawal of certain benefits and concessions to Government employees and pensioners in view of the difficult financial position the State was facing.

How was it possible for the Government to carry out welfare programmes when nearly 94 per cent of the revenue receipts were being spent on salaries and pension alone, she asked while intervening during the budget debate in the Assembly today.

Ms. Jayalalithaa said the expenditure, which was 70.17 per cent of the revenue receipt during 1995-96 had increased to 102.8 per cent in 1999-2000 making it difficult to allot funds for developmental works. The Government, she said, was forced to withdraw certain concessions to reduce the expenditure.

But despite its difficult financial position, the Government had released 3 per cent dearness allowance.

The Chief Minister also said though the Planning Commission allotted Rs. 40,000 crores for the 10th Plan period, the State had to mobilise about Rs. 25,000 crores.

Earlier, N. Nanmaran (CPI-M) said there was a time when the government employees would be eagerly awaiting the budget as it contained concessions to them.

But now they were afraid of it fearing withdrawal of benefits.

Various Government employees unions have threatened to go on an agitation programme protesting the withdrawal of benefits and reduction of pension benefits.

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Jayalalithaa justifies withdrawal of benefits